Creador completes exit from India’s Cholamandalam

23.06.16 / Author: Holden Mann, Asian Venture Capital Journal

Creador has exited the remainder of its stake in India-based non-banking finance company Cholamandalam Investment and Finance (CIF) for INR2.2 billion ($32.5 million).

According to market data, the GP sold 2.4 million shares at INR925 each. It is Creador’s third partial exit from Cholamandalam, following a sale of 36% of its holding in November for $21.5 million and another exit last month for INR1.54 billion.

Creador paid $21.3 million for a 5% stake in CIF in March 2012; the company was Creador’s first-ever investment. With the final exit, the firm claims to have seen a 3.7x return and an IRR of 39% in dollar terms, and to have realized 110% of committed funds over all three exits.

Established in 1978, CIF has more than 530 branches nationwide, providing finance solutions for vehicles, home equity, housing and micro, small and medium enterprises. It had more than $4.4 billion in assets under management as of March 2016; for the 2015 financial year it claimed a net profit of INR6.6 billion, up from INR5.5 billion the year before, and revenue of INR36.9 billion, up from INR32.6 billion the previous year.

CIF’s other backers include the International Finance Corporation, Apax Partners, and WestBridge Capital, in addition to Multiples Alternative Asset Management, which invested alongside Creador in 2012 and made a partial exit for INR1.9 billion last year.

This is the latest liquidity event for Creador’s first fund, following a partial exit from Malaysia’s OldTown White Coffee in 2013 and a full exit from India’s Repco Home Finance in 2014. Last September the firm reached a $250 million first close on its third fund, which has a target of $450 million.